London High Court Rules on BSGR’s Complaint

May 07, 2015 02:00 PM Eastern Time

LONDON--(EON: Enhanced Online News)--Today, in response to the decision by the London High Court to assist
the Republic of Guinea’s investigation into BSG Resources (“BSGR”), Dag
Cramer, a non-executive director of BSGR, issued the following statement:

“BSGR welcomes the effort by the UK Government to uncover the fraud
that has been perpetrated against BSGR by President Alpha Condé.The
decision today is procedural only, and will allow BSGR to provide the
SFO with information that can be passed on to the Government of Guinea
to demonstrate the absence of any wrongdoing by BSGR. These proceedings
also provide an opportunity for BSGR to present evidence of corrupt
practices by the Government of Guinea. We will continue to vigorously
defend and pursue BSGR’s rightful and legal rights.”

The ruling of the High Court relates only to a request for documents: at
no time in these proceedings was BSGR under investigation by the UK
Government, or by the SFO.

BSGR has recently launched an arbitration claim against the Republic of
Guinea before the International Centre for Settlement of Investment
Disputes (“ICSID”) for the illegal expropriation of its assets since
April 2014. The ICSID process is underway, and a timetable for these
proceedings has been agreed. Meanwhile, the Government of Guinea has
announced its intention to tender the assets to interested parties (for
the last year). BSGR will initiate legal proceedings against any party
who will engage with the Government of Guinea in such an inappropriate
transaction.

BSGR has invested over US$1 billion to bring Zogota and Simandou Blocs 1
& 2 iron ore mines into production in record time. Tragically for the
people of Guinea, President Alpha Condé has for the past four years,
illegally obstructed the project, denying the country over US$10 billion
in capital investment, and thereby preventing much-needed economic and
social progress. The sad result of President Alpha Condé’s rule is that
Guinea remains one of the poorest countries in the world, in desperate
need of investment.

BSGR will continue to defend itself against the baseless allegations
made by the Government of Guinea, and is confident that the facts and
evidence to be presented at ICSID will fully vindicate BSGR’s position,
and will demonstrate that President Alpha Condé’s actions against BSGR
are wholly without merit, and part of an elaborate, corrupt scheme to
defraud BSGR of its rights.

Notes to Editors:

BSG Resources is a company incorporated in Guernsey. It is an
international diversified mining company with operations and projects in
multiple countries across metals and mining operations in Africa and
Eastern Europe, including ferro-nickel, diamonds, and iron ore. BSGR is
also active in power generation in Nigeria. BSGR has a 15-year track
record of providing risk capital, operational expertise and engineering
capability for developing and executing mining operations in challenging
environments. BSGR is a subsidiary of BSG, a company with interests
across the world in natural resources, real estate, capital markets and
the diamond industry.